Coinbase to Suspend Trading of BUSD Amid Regulatory Crackdown

Cryptocurrency change Coinbase introduced it can droop buying and selling and delist the Paxos-managed stablecoin asset BUSD. The determination follows Paxos’ revelation that the New York State Department of Financial Services directed the agency to cease issuing the U.S. dollar-pegged token BUSD.

Coinbase to Suspend BUSD Stablecoin on March 13

On Feb. 27, 2023, Coinbase introduced that it’s going to droop buying and selling of binance usd (BUSD) following a current regulatory crackdown on the stablecoin by the New York State Department of Financial Services (NYDFS) on February 13. Reports indicated that the U.S. Securities and Exchange Commission (SEC) despatched Paxos a Wells Notice concerning BUSD on that day. Paxos confirmed in a press launch that the NYDFS directed the regulated agency to cease issuing the stablecoin.

“We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent reviews, Coinbase will suspend trading for [binance usd] (BUSD) on March 13, 2023, on or around 12pm ET,” the corporate mentioned in a tweet printed on Monday. “Trading will be suspended on Coinbase.com (Simple and Advanced Trade), Coinbase Pro, Coinbase Exchange, and Coinbase Prime.”

Several crypto supporters commented on Coinbase’s suspension of BUSD. “Will you suspend USDC when Gary comes for that too?” one individual asked within the thread. Others criticized Coinbase’s timing of the stablecoin suspension. “So at what point did BUSD suddenly fail to meet your listing standards, and which standard specifically did it fail to meet?” one other individual wrote in response to the Coinbase tweet. According to the stablecoin’s token contract at press time, statistics present that 177,125 distinctive wallets maintain BUSD.

Currently, BUSD is the eleventh largest cryptocurrency by valuation after being removed from the highest ten crypto property by market capitalization. Prior to Paxos’ announcement on February 13, there have been 16.1 billion BUSD in circulation. As of February 27, there are 10.73 billion BUSD in circulation after 5.37 billion BUSD had been faraway from the variety of tokens. Binance’s reserve portfolio signifies that the change holds 8.64 billion BUSD, which represents 80.52% of the whole circulating provide.

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